Cryptocurrencies: Global Trend
How does the war in Ukraine contribute to the mass adoption of cryptocurrencies?
The war in Ukraine has become a catalyst for the mass adoption of cryptocurrencies. Since the end of February, there has been more and more talk in the media about the role of digital assets in the economy, regulators are tightening control over the industry, and investors are increasingly preferring crypto to traditional finance. We tell you what changes have occurred in the crypto policy of different countries during this period.
On March 9, 2022, President Biden signed an executive order that mandates the creation of the "first whole-of-government approach" to regulating cryptocurrency activities. The main goals are consumer and investor protection, financial stability and systemic risk, prevention of illicit funding, U.S. leadership and competitiveness, financial inclusion, and responsible innovation.
On March 17, a hearing was held in the US Senate on the topic “Understanding the role of digital assets in illicit financing”, in which Mikhail Chobanyan, the creator of KUNA , took part. The risks of cryptocurrencies were discussed, as well as the role of digital assets in supporting Ukraine and the impact of sanctions on Russia in connection with the war.
The UK is developing a plan to turn the country into a global crypto hub. On April 4, 2022, the government announced the first steps - the regulation of stablecoins. This will allow residents to use such assets as payment. The global goals are more ambitious: to turn the UK into a global hub for technology and investment.
In addition, the government also plans to issue its own non-fungible token (NFT) as a “symbol of long-term plans.” The NFT will be issued by the Royal Mint.
On March 31, European Union legislators voted to ban anonymous crypto transactions, sparking public controversy over security and privacy. The AML rules that apply to regular payments over EUR 1,000 will be expanded. Senders and recipients must be identified even for the smallest crypto transactions.
Georgia is also seeking to regulate the crypto market. The head of the National Bank, Koba Gvenetadze , said on April 4 that the central bank had already developed draft regulatory legislation in accordance with the requirements of international agencies. Koba estimates the monthly turnover of digital assets in Georgia at $1.09 - $1.64 million.
The official representative of the Bank of Japan called on the G7 countries to adopt common rules for regulating cryptocurrencies as soon as possible. According to the representative, this measure is necessary to prevent the use of digital assets to circumvent sanctions.
In mid-March, President Volodymyr Zelensky signed the “Law on Virtual Assets”, which will regulate the circulation of cryptocurrencies in Ukraine. This will enable crypto businesses to work legally, open bank accounts and contribute to the development of the country's economy.
The Thai Securities and Exchange Commission (SEC) has announced a ban on the use of cryptocurrencies as payment. In the meantime, the commission has proposed a new rule requiring quality of service disclosures from crypto brokers, exchanges and dealers.
Why is it important
Crypto regulation should be seen as a global trend. On the one hand, new laws are often criticized by the community. On the other hand, this is a necessary measure so that the business can fully develop, and the market becomes more efficient and reliable.
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